Karnataka Govt Tells Uber, Ola to Get Licences or Get off the Road

300 cases have been filed against drivers of Ola and Uber for not complying to rules set by the government in April.

• The Karnataka government has directed Uber and Ola to stop operations until they obtain valid licenses from the government. This has received strong reactions from the corporate world.
  

• Licenses imply no surge pricing, complying with fixed fares by the government and registering with local transport authorities.
  

If they have made some new rules for taxi aggregation, and the rules are reasonable without putting liabilities, it is fine. But they must not stop the business. Stopping the business means Bengaluru earning a bad name globally. The Siddaramaiah government will be seen as anti-innovation and anti-technology.

TV Mohandas Pai, chairman, Aarin Capital

• Ola and Uber are backed by private equity funds. They have committed to spending about Rs 15,000 crore in India to win India’s taxi market.
  

• This move comes after multiple drivers affiliated to Ola and Uber protested against the alleged “harassment” by transport authorities that are keeping a hawk’s eye on these aggregators on the basis that they have not followed the new rules announced by the Karnataka government in April. 300 cases have been filed by the transport department against drivers for not following rules.
  

(With inputs from the Business Standard)